Twilio employees, associates charged with insider trading by SEC
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Re: Twilio employees, associates charged with insider trading by SEC
#2I can’t understand the rationale behind blowing up your life and career in which you made $300k+/year for a tiny $1m gain split between 3 people and their families.
Why are people who should otherwise be much smarter than this doing incredibly dumb things? Just greed? and entitlement?
Re: Twilio employees, associates charged with insider trading by SEC
#3I can’t understand the rationale behind blowing up your life and career in which you made $300k+/year for a tiny $1m gain split between 3 people and their families. Why are people who should otherwise be much smarter than this doing incredibly dumb things? Just greed? and entitlement?
probably thought they could get away with it
Re: Twilio employees, associates charged with insider trading by SEC
#4All insider trading should be legal. Imagine the opposite case. You know your company is doing poorly but the government forces you to not sell your stock and take a loss.
Re: Twilio employees, associates charged with insider trading by SEC
#5All insider trading should be legal. Imagine the opposite case. You know your company is doing poorly but the government forces you to not sell your stock and take a loss.
It's only illegal if you're using secret information. The company can't report info to some shareholders and not others.
Re: Twilio employees, associates charged with insider trading by SEC
#6All insider trading should be legal. Imagine the opposite case. You know your company is doing poorly but the government forces you to not sell your stock and take a loss.
if you are in the position of knowing secret data of a publicly traded company, and you are uncomfortable with the position of possibly losing money because you can not act on the secret data, I would suggest you not hold stock for companies you know secret data about
No insider trading should not be legal
Re: Twilio employees, associates charged with insider trading by SEC
#7I can’t understand the rationale behind blowing up your life and career in which you made $300k+/year for a tiny $1m gain split between 3 people and their families. Why are people who should otherwise be much smarter than this doing incredibly dumb things? Just greed? and entitlement?
probably thought they could get away with it
lol well yeah.
but the SEC literally has to run one query that shows someone with a big gain buying stock and options before earnings and work at said company which i’m pretty sure you’re not supposed to be doing in the first place whether you had special info or not
Re: Twilio employees, associates charged with insider trading by SEC
#8What a lame way to insider trade. I thought that instance of the Capital One analysts using internal database queries to understand which retailers were having good quarters was far more interesting and insidious. Similarly you could imagine a lot more subtle ways to leverage insider Twilio information (count of verification texts sent by client?) to make far more obscure bets. The SEC definitely takes a look at anyone who goes from zero trading -> making improbably great trades worth millions though, so better have a good patsy lined up!
Edit: Context for the traders I was talking about. What they did was much cooler and honestly kind of impressive: https://www.bloomberg.com/view/articles/2015-01-23/capital-o...
Re: Twilio employees, associates charged with insider trading by SEC
#9I'm sure the SEC has an array of tools with which to comb through the data, but I would bet that the vast majority of these cases against non-professional traders are flagged by identifying retail brokerage accounts where the notional value of options outstanding is
1) larger than some % of the the portfolio size (e.g. > 50%)
2) with exposure concentrated on 1-3 stocks
3) with no similarly-sized follow-up trades in other names (e.g. they didn't just figure out a new methodology and begin applying it across different companies)
Due diligence follow-up to determine that one or more of the yokels works for the company in question, and LinkedIn will get you more of the perps.
The only surprising thing to me is that the SEC likely hasn't had to tune this filter for decades.
Re: Twilio employees, associates charged with insider trading by SEC
#10All insider trading should be legal. Imagine the opposite case. You know your company is doing poorly but the government forces you to not sell your stock and take a loss.
if you are in the position of knowing secret data of a publicly traded company, and you are uncomfortable with the position of possibly losing money because you can not act on the secret data, I would suggest you not hold stock for companies you know secret data about No insider trading should not be legal
Something I was always curious about, but I lack the legal background to find the answer. What if public information showed that you should sell the stock, but you decide to hold it instead (i.e., not do anything at all) because you have insider information that the company will be doing much better than expected? The "not selling" part (assuming you bought stock prior to having insider knowledge) is a form of insider trading, but I can't see how that could be enforced (i.e., how would the SEC be able to prove that you would have sold if you didn't have that positive insider knowledge?)